Bullish investors believe AI is a new, infinite fourth factor of a nation’s production and wealth creation. In the past, we had labour, capital and land as production inputs, all of which were, of course, finite. Land provided the raw materials, labour the muscle and the mind to transform them, and capital was the tool.
Enter AI. The transformative aspect of this fourth ingredient is that, unlike the physical limitations of land or the finite hours of the human workforce, data is a resource that is functionally unlimited. And, importantly, it’s the only factor of production that actually grows more abundant the more we use it.
This article was first published in The Australian on 27 May 2026.
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There’s a battle playing out right now between Wall Street’s most bullish artificial intelligence (AI) optimists and the bond market traders quietly sounding the alarm. The outcome of that contest will matter enormously to investors with skin in the game.